De Beers gets prospecting nod in Chhattisgarh

TNNSep 26, 2002, 04.42am IST

BHOPAL: South African diamond mining giant De Beers is back in the diamond mining business in Chhattisgarh. As a first step, it has been given three reconissance permits by the Union Ministry of Mines, following a recommendation from the Chhattisgarh government.

"We have cleared 12 such requests from the state, and one of these is De Beers," union minister of state for coal, mines and law Ravi Shankar Prasad told ET here on Wednesday.

Walter Masih, officer-on-special duty, with the mining department of the Chhattisgarh government confirmed the decision. "Apart from De Beers, Australian diamond mining company Rio Tinto, that has an association with the Indian company ACC, is also among the companies to have got a similar permit," Masih said.

In all, five companies have been given permits for an aggregate of 10 areas. The other companies are Geo, Mysore; Emperor Granites, Gwalior and Meera Exports. While 10 permits have been given for diamond exploration, the other two are for baser metals.

"Chhattisgarh has a very rich potential in the diamond mining sector. We have been exploring six areas in the Berhadih area of Raipur district, and so far, our mining department has confirmed the existence of two kimberlite pipes," Masih said.

De Beers joined the fray for diamond exploration and mining in the mid-90s when the undivided state of Madhya Pradesh was in existence.

However, the terms and conditions stipulated by the state government were not to its liking, and it withdrew from the process at a later stage.

The first private contract for diamond and exploitation was then signed between the MP government and B Vijaykumar, a firm belonging to the controversial diamond merchant Bharat Shah.

However, after the formation of Chhattisgarh, the state government cancelled the agreement.